DCIT, Circle - Murshidabad, Murshidabad V. M/s. Malda Metal Pvt. Ltd., Murshidabad

ITA 584/KOL/2011

• Counselvise Citation: [2011] 140 COUNSELVISE.COM (IT) 54640 (ITAT-KOLKATA)
• Duration Of Justice: 7 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-11-2011
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2007-2008
• Appeal Filed On: 13-04-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: D J MEHTA
• Assessee Lawyers: N O N E
• Keywords: Additional evidence
• Section: 143(3); 194C

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH: KOL KATA () BEFORE , /AND , ! . '# . ) [BEFORE SRI MAHAVIR SINGH, JM & SHRI C. D. RAO, AM] $ $ $ $ / I.T.A NO. 584/KOL/2011 %& '( %& '( %& '( %& '(/ // / ASSESSMENT YEAR : 2007-08 DEPUTY COMMISSIONER OF INCOME-TAX VS. M/S. MALDA METAL PVT. LTD. CIRCLE-MURSHIDABAD (PAN:AADCM 1451 F) (*+ /APPELLANT ) (,-*+/ RESPONDENT ) FOR THE APPELLANT: SHRI D. J. MEHTA FOR THE RESPONDENT: SHRI N O N E DATE OF HEARING: 15.11.2011 DATE OF PRONOUNCEMENT: 15.11.2011 . / ORDER PER MAHAVIR SINGH, JM ( , , , , ) THIS APPEAL BY REVENUE IS ARISING OUT OF ORDER OF C IT(A)-XXXVI, KOLKATA IN APPEAL NO. 848/CIT(A)-XXXVI/KOL/RANGE-MSD/09-10 DATED 07.02.20 11. ASSESSMENT WAS FRAMED BY JCIT, MURSHIDABAD U/S 143(3) OF THE INCOME-TAX ACT, 1961 (HEREINAFTER REFERRED TO AS THE ACT) FOR ASSESSMENT YEAR 2007-08 VIDE HIS ORDER DA TED 31.12.2009. 2. THE ONLY ISSUE IN THIS APPEAL OF REVENUE IS AGA INST THE ORDER OF CIT(A) DELETING THE DISALLOWANCE MADE BY ASSESSING OFFICER ON ACCOUNT O F EXPENSES OF FREIGHT PAID WITHOUT DEDUCTING TDS U/S. 194C AND FOR THAT THE PROVISION S OF SECTION 40(A)(IA) OF THE ACT WAS INVOKED. FOR THIS, REVENUE HAS RAISED THE ISSUE TH AT ASSESSING OFFICER WITHOUT CALLING REMAND REPORT AND BY CONTRAVENTION OF PROVISIONS OF RULE 4 6A OF THE I. T. RULES, 1962 (HEREINAFTER REFERRED TO AS THE RULES) ADMITTED ADDITIONAL EVI DENCE. FOR THIS, REVENUE RAISED FOLLOWING TWO GROUNDS: 1. IN THE FACTS AND CIRCUMSTANCES OF THE CASE, THE LD. CIT(A) HAS ERRED BOTH IN FACTS AND IN LAW IN DELETING THE ADDITION OF RS.12,20,949/- M ADE U/S. 40(A)(IA) OF THE I. T. ACT, 1961 BY ASSESSING OFFICER IN CONTRAVENTION OF PROVISION OF RULE 46A OF THE INCOME TAX RULES, 1962. 2. IN THE FACTS AND CIRCUMSTANCES OF THE CASE, THE LD. CIT(A) HAS ERRED IN ADMITTING ADDITIONAL EVIDENCE OF FREIGHT REGISTER WITHOUT AFF ORDING AN OPPORTUNITY TO ASSESSING OFFICER WITHOUT CALLING FOR A REMAND REPORT. 2 ITA 584/K/2011M/S. MALDA METAL PVT. LTD..A.Y. 07-0 8 3. WE HAVE HEARD LD. DR SHRI D. J. MEHTA AND GONE T HROUGH FACTS AND CIRCUMSTANCES OF THE CASE. WE FIND THAT THE ASSESSING OFFICER SIMPL Y WITHOUT GOING INTO ANY DETAILS MADE ADDITION AS UNDER: 5. FREIGHT INWARDS ARE OF RS.12,20,949/-, NO TDS W AS MADE FROM THE ABOVE PAYMENTS, THEREFORE LIABLE TO BE ADDED U/S. 40(A)(I A) OF THE I. T. ACT, 1961 (ADDITION RS.12,20,949/-). WE FIND THAT THE ASSESSEE BEFORE ASSESSING OFFICER FILED BOOKS OF ACCOUNT, INCLUDING CASH BOOK, BANK BOOK, LEDGER, PURCHASE REGISTER, SALE REGISTER , DETAILS OF PURCHASES, EVIDENCE ON TERM LOAN, SALE LIST, LIST OF SUNDRY CREDITORS AND DEBTORS, BA NK STATEMENT, BILLS, VOUCHERS AND OTHER DETAILS. THE CIT(A) DELETED THE DISALLOWANCE BY STATING THAT NONE OF THE PAYMENTS EXCEEDS RS.20,000/- INDIVIDUALLY OR EXCEEDS RS.50,000/- IN AGGREGATE IN ENTIRE YEAR SO AS TO FALL IN THE MISCHIEF OF SECTION 40(A)(IA) OF THE ACT. ACCORDING TO HIM, AS PER FREIGHT REGISTER THE PAYMENTS ARE BELOW THE PRESCRIBED LIMIT AND HE DELETED THE ADDITION BY GIVING FOLLOWING FINDING: I HAVE DULY CONSIDERED THE SUBMISSION OF THE APPEL LANT AND SEEN THE FREIGHT REGISTER AND INCLINED TO ACCEPT ARS VERSION. NONE OF THE PAYME NT EXCEEDED RS.20,000/- INDIVIDUALLY OR EXCEEDED RS.50,000/- IN AGGREGATE IN THE WHOLE Y EAR, SO AS TO BE COVERED BY THE MISCHIEF OF SECTION 40(A)(IA) OF THE ACT. IT APPEA RS THAT THE A.O DID NOT EXAMINE THIS MATTER AT ALL BUT MADE THE ADDITION ON PRESUMPTION. THE ADDITION OF RS.12,20,949/- IS, THEREFORE, DELETED. 4. WE FIND THAT THE CIT(A) HAS GONE INTO FREIGHT RE GISTER, WHICH WAS AVAILABLE BEFORE ASSESSING OFFICER EVEN DURING ASSESSMENT PROCEEDING S AND THE FREIGHT INWARDS ARE RECORDED IN THE FREIGHT REGISTER. WE FIND NO INFIRMITY IN THE ORDER OF CIT(A). IN VIEW OF THE ABOVE POSITION, WE CONFIRM THE ORDER OF CIT(A) AND APPEAL OF REVENU E IS DISMISSED. 5. IN THE RESULT, APPEAL OF REVENUE IS DISMISSED. 6. ORDER PRONOUNCED IN OPEN COURT. SD/- SD/- . '# '#'# '# . ! , (C. D. RAO) (MAHAVIR SINGH) ACCOUNTANT MEMBER JUDICIAL MEMBER ( #! #! #! #!) )) ) DATED :15 TH NOVEMBER, 2011 /0 %12 3 JD.(SR.P.S.) 3 ITA 584/K/2011M/S. MALDA METAL PVT. LTD..A.Y. 07-0 8 . 4 , 5 '6- COPY OF THE ORDER FORWARDED TO: 1 . *+ / APPELLANT DCIT, CIRCLE-MURSHIDABAD 2 ,-*+ / RESPONDENT, M/S. MALDA METAL PVT. LTD., VILL. BAN IPUR, P.O. GHORSALA, MURSHIDABAD. 3 . .% ( )/ THE CIT(A), KOLKATA 4. .% / CIT, KOLKATA 5 . => ,% / DR, KOLKATA BENCHES, KOLKATA - ,/ TRUE COPY, .%?/ BY ORDER, 2 /ASSTT. REGISTRAR .